FY14 Compensation Guidelines

As we continue to assess how to best invest limited institutional resources, it is imperative that we implement and promote faculty and staff compensation practices that effectively support our most important asset, our people. To assist our academic and administrative units with these decisions, the following Compensation Guidelines are provided for the FY14 budget year:

Faculty Promotions

Faculty promotions may be funded if endorsed by the appropriate College/School, Dean, or Library Director.

Faculty promotions for all schools, including the School of Medicine, will be effective 10/1/2013.

Each College/School/Unit must submit a merit-based, salary increase “Plan” for review and approval to the Provost/VPFAA no later than 7/15/2013. A Plan with a 3% total pool for salary distribution among faculty and staff must be submitted. Plans should include total salary pool dollars to be made available (with % of total salary base this represents), planned ranges for individual increases (e.g. 1-5%), and planned distribution strategy (e.g. 20% of merit recipients to receive 5%, 40% to receive 2-4%, etc.). All Plans should identify funding sources utilized.

The 3% pool for College/School/Unit Plans may also include market equity considerations as part of allocation and distribution methodologies. Each College/School/Unit considering a Plan with market equity component should fully discuss with HRM before submitting.

All Plans must require that individual, merit-based salary increases align with level of performance reflected in annual evaluations.

Employees must have completed their six month probationary period in order to be eligible for a merit increase.

Individual salary increases of more than 15% under Plan will require prior Provost/Vice President for Finance and Administration (VPFAA) approval.

Effective Dates

With the exception of the School of Medicine and Joint Health Sciences, merit pool increases for all colleges/schools and administrative areas will be effective on 10/1/2013 for faculty and monthly paid staff and 9/22/2013 for bi-weekly paid staff.

In order to better align with UAB Medicine, the School of Medicine and Joint Health Sciences will be able to submit Plans that implement merit increases effective 1/1/14 for faculty and monthly paid staff and 12/29/13 for bi-weekly paid staff.

Fixed Increment Payments (FIP)

Requests for FIPs will be considered for FY14.

FIPs are one-time, non-recurring lump sum salary payments used in limited cases where an employee is at or above the pay range maximum and a merit-based payment is justified.

FIPs may also be used to reward individual performance in unique or unusual significant special projects of limited duration that require extensive time and effort above and beyond regularly assigned job duties (note: a 12-month payment distribution schedule may be required for employees receiving FIPs that are funded on federally-sponsored projects).

Submission Dates

FIP recommendations (other than School of Medicine and Joint Health Sciences) must be submitted no later than 7/15/2013 to Compensation via Compensation Request Form (CRF) who will compile and submit to the Office of the Provost/VPFAA.

FIP recommendations for the School of Medicine and Joint Health Sciences must be submitted no later than 11/15/2013 to Compensation via Compensation Request Form (CRF) who will compile and submit to the Office of the Provost/VPFAA.

Effective Dates

Approved FIPs will be effective 10/1/2013 with the exception of the School of Medicine and Joint Health Sciences.

Approved FIPs for the School of Medicine and Joint Health Sciences will be effective 1/1/2014.

Pay Ranges

UAB General Pay Range Structure will not be adjusted for FY14.

Faculty Ranges will not change for FY14.

Incentive Plans

Previously-established compensation incentive plans must be submitted via CRF for recertification as required by existing UAB incentive program guidelines by 7/15/2013.

New incentive plan proposals must be submitted via CRF by 7/15/2013 to be considered for implementation in FY14.

Salary adjustments for lateral transfers greater than 10% should be submitted/reviewed by HRM with support/approval by the applicable College/School/Department VP, Dean, or Library Director. HRM will review and submit to the appropriate UAB senior administrator (Provost/VPFAA) for final approval.

New Hires

New hires may proceed in accordance with established UAB and departmental policies provided funding is available. New Hires do not require HRM approval if within the pay range. Internal equity must be considered when determining new hire pay rates.

New Positions/Position Reclassifications

New positions/reclassifications may be requested under established HRM procedures via CRF. These will be reviewed by HRM Compensation to determine the appropriate job title and pay grade for the position. These requests require approval from the applicable College/School/Department VP, Dean or Library Director. Please note: once a position has been reviewed for reclassification, it is not eligible for review again for a minimum of 12 months.

Retention Salary Adjustments

Retention salary adjustments will be reviewed on a case-by-case basis. Initial review and approval is required from the College/School/Department VP, Dean, or Library Director. Once approval is obtained, departments should submit the request and approval to HRM if the request if greater than 10%. HRM will review and submit to the appropriate UAB senior administrator (Provost/VPFAA) for final approval.

Salary Adjustments

Salary Adjustments for probationary, job rate and establish step rate programs (including graduate assistantships/stipend increases, resident progression and student salary adjustments) may proceed in accordance with established UAB and departmental policies provided funding is available. These adjustments must be funded by College/School/Department and approved by the appropriate VP, Dean or Library Director.

Supplemental Duties – Additional Pay

Requests for additional compensation for supplemental duties must be approved by the College/School/Unit VP, Dean, or Library Director prior to submission via CRF for HRM review. Please note: additional/supplemental duties should be temporary in nature (less than six months).

The following list summarizes the review and approval process for FY14 compensation actions:

VP/Dean/Library Director Approval only. Requires no review by HRM:

a. Graduate assistantship with annual stipend increaseb. Lateral transfer with increase of 10% or lessc. New hire with proposed salary within the pay graded. Merit increasese. Probationary increase of 10% or lessf. Resident progression increaseg. Salary share adjustment between two or more funding sources where the total salary does not change (e.g. HSF/UAB/VA/UABHS)h. Staff promotion of 15% or less or to range minimumi. Student salary adjustment

oNo more than five elementsoCalculation on each element musts be easy to communicate and understand

Controllable

oMajority of participants must be able to impact each elementoParticipants must have a high level of direct control over the elements

Measurable

oMust have an objective systematic measureoMust be able to administer program at location level

Meaningful

oReasonable goals that ensure a strong participation rateoTargeted bonus amount must be motivationaloGoals must be set prior to implementation

Sunset/Plan Changes

oMust have start and end datesoMust be reviewed periodically and enhancements made as needed subject to executive and compensation approval

Incentives are intended to be self-funded and are intended to be consistent with the total compensation levels of the external labor market. Overall, we want to ensure fairness to employee, return on investment, effective motivational qualities and goal congruency between the system and the employees.

As we continue to assess how to best invest institutional resources in times of fiscal restraint, it is imperative that we implement and promote to UAB-wide employee compensation policies that effectively support our most important asset – our workforce. To assist our academic and administrative units with these decisions, the following Employee Compensation Guidelines are provided for the FY 10-11 budgetary year:

After two years without a general salary increase plan, UAB is making available a merit-based salary option to reward performance and keep UAB salaries competitive. Each College/School/Unit electing to participate must submit a merit-based, salary increase “Plan” for review and approval to the Provost/VPFAA no later than 7/16/10. UAB’s institutional target is for College/Schools/Units to submit Plans with a 3% pool for merit-based distribution among faculty and staff (if funding is available). Plans should include total salary pool dollars to be made available (with % of total salary base this represents) and planned ranges for individual increases (e.g. 1-5%). All Plan submissions should identify appropriate sources of sustainable funding. College/School/Unit Plans may also include market equity considerations as part of allocation and distribution methodologies. Each College/School/Unit considering a Plan with market equity component should fully discuss with HR before submitting. All Plans must require that individual, merit-based salary increases align with level of performance reflected in annual evaluations. Plans may consider annual evaluations from the previous two years when no general salary plan was available. Individual salary increases of more than 10% under Plan will require prior Provost/Vice President for Finance and Administration (VPFAA) approval. Once approved, all Plans must complete salary pool distributions and implement salary adjustments for faculty and monthly paid staff effective 10/1/10 and bi-weekly paid staff effective 9-26-10.

The UAB General Wage Structure and Faculty Ranges will not be adjusted.

Salary adjustments for probationary, job rate and establish step rate programs (including graduate assistantships/stipend increases, resident progression and student salary adjustments) may proceed in accordance with established UAB and departmental policies provided funding is available. These adjustments must be funded by College/School/Department and approved by the appropriate VP, Dean or Library Director.

College/Schools/Units with previously established compensation incentive plans must submit these plans for recertification as required by existing UAB incentive program guidelines by 7/16/10. College/Schools/Units proposing new incentive plans must submit these plans by 7/16/10 to be considered for implementation in FY 10-11. Please refer to the UAB incentive program guidelines for further information.

College/Schools/Units will be permitted to continue to fund faculty promotions for FY10-11. Staff promotions into pre-approved positions will also be permitted. Salary adjustments for promotions must be endorsed by the appropriate College/School/Department VP, Dean, or Library Director.

College/Schools/Units may request new positions for FY 10-11 under established HR procedures. New positions will be reviewed by HR Compensation in order to determine if the classification desired is appropriate. All new positions will require approval from the applicable College/School/Department VP, Dean or Library Director.

Position reclassifications will be permitted on a limited basis. All requests for position reclassifications should be carefully considered in light of current budget restraints and evolving program needs. Please note: once a position has been reviewed for reclassification, it is not eligible for review again for a minimum of 12 months. Reclassifications will require approval from the applicable College/School/Department VP, Dean, or Library Director.

Shared salary adjustments between two or more funding sources where the total salary does not change (e.g. HSF/IAB/VA/UABHS) may be approved at the appropriate VP, Dean, or Library Director level after review by HR.

Salary adjustments for UAB employees who make lateral transfers should be carefully considered in light of relative College/School/Unit Salary Plans, current budget restraints and evolving program needs. Increase less than 10% should be submitted/reviewed by HR with support/approval by the applicable College/School/Department VP, Dean, or Library Director.

Requests for salary adjustments as part of a competitive retention package will be reviewed on a case-by-case basis. Initial review and approval is required from the College/School/Department VP, Dean, or Library Director. Once this approval is obtained, departments should submit the request and approval to HR. HR will review and submit to the appropriate UAB senior administrator (Provost/VPFAA) for final approval.

Requests for additional compensation for supplemental duties must be approved by the College/School/Unit VP, Dean, or Library Director prior to submission for HR review. Please note: additional/supplemental duties should be temporary in nature (less than 6 months).

Departments requesting salaries for New Hires with proposed salaries above the midpoint of the range require review/approval by the appropriate VP/Dean/Director after HR review/approval. This includes persons moving from student or temporary initiated positions into permanent/full-time or part-time positions.

Fixed Increment Payment (FIP) requests will be considered for FY 10-11. FIPs are one-time, non-recurring lump sum salary payments used in limited cases where an employee has reached maximum wage in a pay band and a merit-based payment is justified. FIPs may also be used to reward individual performance in unique or unusual significant special projects of limited duration that require extensive time and effort above and beyond regularly assigned job duties (note: a 12-month payment distribution schedule may be required for employees receiving FIPs that are funded on federally-sponsored projects). FIP recommendations must be submitted to the Office of the Provost/VPFAA no later than 7/16/10. Approved FIPs will be effective 10/1/10.

The following list summarizes the review and approval process for FY10-11 compensation actions:

As we continue to assess how to best invest limited institutional resources, it is imperative that we implement and promote UAB-wide employee compensation practices that effectively support our most important asset: our workforce. To assist our academic and administrative units with these decisions, the following Compensation Guidelines are provided for the FY13 budget year:

Faculty Promotions

Faculty promotions should be funded if endorsed by the appropriate College/School, Dean, or Library Director

Merit Increases

There will be no general university pool for merit increases for FY13

Schools/units may fund merit increases if funds are available

Fixed Increment Payments (FIP)

There will be no general university pool for FIP requests. Requests for FIPs will be considered for FY13 if school/unit has funding available. FIPs are one-time, non-recurring lump sum salary payments used in limited cases where an employee is at or above the pay range maximum and a merit-based payment is justified. FIPs may also be used to reward individual performance in unique or unusual significant special projects of limited duration that require extensive time and effort above and beyond regularly assigned job duties

Note: a 12-month payment distribution schedule may be required for employees receiving FIPs that are funded on federally-sponsored projects.

FIP requests must be submitted to the Provost/VPFAA no later than 7/16/2012 for FIPs to be effective 10/1/2012.

Pay Ranges

UAB General Pay Range Structure will remain at FY12 levels

Faculty Pay Ranges will remain at FY12 levels

Incentive Plans

Previously-established compensation incentive plans must be submitted for recertification as required by existing UAB incentive program guidelines by 7/16/2012.

New incentive plan proposals must be submitted by 7/16/2012 to be considered for implementation in FY13

Please refer to the UAB incentive program guidelines for further information

Lateral Transfers

Salary adjustments for lateral transfers greater than 10% should be submitted/reviewed by HR with support/approval by the applicable College/School/Department VP, Dean, or Library Director. HR will review and submit to the appropriate UAB senior administrator (Provost/VPFAA) for final approval

Internal salary equity concerns must be addressed appropriately before any lateral transfers are approved

New Hires

New hires may proceed in accordance with established UAB and departmental policies provided funding is available

New hires do not require HR approval if within pay range.

New Positions/Position Reclassifications

New positions/reclassifications may be requested under established HR procedures. New positions/reclassification will be reviewed by HR Compensation to determine the appropriate job title for the position. These requests require approval from the applicable College/School/Department VP, Dean or Library Director.

Position reclassifications that result in lateral transfers with increases of greater than 10% must be submitted to appropriate UAB senior administrator (Provost/VPFAA) for final approval.

Position reclassifications that result in promotional increases of greater than 15% (if higher than range minimum) must be submitted to appropriate UAB senior administration (Provost/VPFAA) for approval.

Internal salary equity concerns must be addressed before any reclassifications can be approved.

Note: once a position has been reviewed for reclassification, it is not eligible for review again for a minimum of 12 months.

Retention Salary Adjustments

Retention salary adjustments will be reviewed on a case-by-case basis. Initial review and approval is required from the College/School/Department VP, Dean, or Library Director. Once College/School/Department approval is obtained, departments should submit request and approval to HR. HR will review and submit to the appropriate UAB senior administrator (Provost/VPFAA) for final approval.

Salary Adjustments

Salary Adjustments for probationary, job rate and establish step rate programs (including graduate assistantships/stipend increases, resident progression and student salary adjustments) may proceed in accordance with established UAB and departmental policies provided funding is available. These adjustments must be funded by College/School/Department and approved by the appropriate VP, Dean or Library Director.

Probationary increases of greater than 10% will be reviewed by HR and submitted to the appropriate UAB senior administrator (Provost/VPFAA) for final approval.

Supplemental Duties – Additional Pay

Requests for additional compensation for supplemental duties must be approved by the College/School/Unit VP, Dean, or Library Director prior to submission for HR review. All requests will go to Provost/VPFAA. Note: additional/supplemental duties should be temporary in nature (less than 6 months).

The following list summarizes the review and approval process for FY13 compensation actions:

VP/Dean/Library Director Approval only. Requires no review by HR:

Graduate assistantship with annual stipend increase

Lateral transfer with increase of 10% or less

Merit increases

New hire with proposed salary within the pay grade

Probationary increase or 10% or less

Resident progression increase

Salary share adjustment between two or more funding sources where the total salary does not change (e.g. HSF/UAB/VA/UABHS)